Warning signs on the road to financial ruin are almost as essential as warning signs you see on a highway while driving. But there are fewer warnings for financial decisions. Still, financial ruin can affect you, your family, and your future. What are the signs that you might be traveling in the wrong financial direction?
Five Warning Signs of Financial Ruin
We are not publishing the warning signs of financial ruin to condemn or embarrass you. But we want them to sound alarm bells that it is time to address the issue and take another route.
Five warning signs include:
- You do not know the amount of your debt without looking it up – A credit report can give you a list of your creditors.
- You have exceeded or increased your credit balance more than once – Overspending without the money to pay can create a cycle of requesting higher credit limits.
- You pay for vacation with money that you will earn after you return – Travel now, pay later is a practice of many American families.
- You do not know how much money you should save – Most experts recommend saving at least 20% of your income.
- You do not have three to six months of income in savings – Saving the income helps prevent a greater financial crisis when unexpected illness or emergencies affect your family.
Rerouting Off the Road of Financial Ruin
There is a difference between being on the road to financial ruin, staying on the road, and experiencing defeat. John Hunt of Raleigh is a financial advisor with a commitment to his clients. He will help you see potential hazards, teach you how to navigate them, and help you prevent some future money problems. Let John help you and your family get on the financial road to recover. Call or text him at 919-480-8418 or send him a message through our contact form.